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Energy & transport — update

Australia's liquid fuels situation (2026)

This page summarises publicly reported developments to 20 April 2026. It is not a substitute for emergency advice. Where prices, reserves, or station counts move quickly, follow the linked primary sources and official channels.

Snapshot (late March–mid April 2026)

On 30 March 2026, national cabinet agreed to halve fuel excise for three months (widely reported as about 26 cents per litre relief at the bowser from 1 April), alongside other budget measures widely covered at the time. Reporting on the exact phase labels of any national plan should be checked against the primary Commonwealth statements you rely on.

Retail prices moved quickly. By mid-April, multiple outlets reported further falls in Perth metro prices (for example PerthNow, 18 April 2026; PerthNow, 19 April 2026). National reporting in the same period noted metropolitan bowser prices easing from earlier peaks and households making fewer precautionary purchases (SBS News, 19 April 2026). That does not remove underlying volatility in wholesale markets or shipping routes.

Western Australia (official summary). The WA Government's Western Australia's fuel security page (last updated 17 April 2026) states that, as of 14 April 2026, national fuel stocks were described as secure with more than 30 days in reserves and shipments continuing; Western Australians were asked to buy only what they need. The same update notes FuelWatch will expand from 1 May to cover every WA fuel retailer (about 200 additional retailers), with higher penalties for non-reporting of prices and mandatory reporting of outages to follow. It also records an extra 4 million litres of state-owned diesel for rapid deployment, support for regional airfares under the Regional Airfare Zone Cap scheme, halved Commonwealth excise from 1 April, and that all states and territories, including WA, remain at Level 2 on the National Fuel Security Plan. Emergency powers under section 43 of the Fuel, Energy and Power Resources Act were used from 2 April 2026 to require industry supply-chain information sharing. Weekly public updates: WA Government weekly fuel update.

In Perth, the weekly retail price cycle was disrupted: Consumer Protection advised checking FuelWatch daily (ABC News, 1 April 2026). Premier Roger Cook was reported as cautious about the outlook while Commonwealth figures were discussed in media (WAtoday, 16 April 2026).

Last reviewed for on-page copy: 20 April 2026. Older bullets elsewhere on this page may reflect March media only—prefer the WA and Commonwealth pages above for current WA measures and plan level.

What's Causing the Shortage?

1Middle East Conflict

The US-Israel war on Iran, which began on February 28, has rattled global energy markets. Tehran has effectively halted most traffic through the Strait of Hormuz, a critical shipping lane that handles approximately one-fifth of the world's oil supply. Three oil tankers were hit by Iranian fire in March 2026, and crude oil prices surged past $100 per barrel at the height of the conflict, before easing to around $US95 as diplomatic signals emerged.

2Retail demand and purchasing behaviour

Early in the disruption, media and industry commentary described sharp increases in some retail fuel sales consistent with precautionary filling. Later reporting, citing bank card spending patterns, described households pulling back from stockpiling as pump prices eased (SBS News, 19 April 2026). Behaviour can shift quickly; use contemporaneous retail and wholesale data rather than a single snapshot.

3Supply Chain Prioritisation

Major fuel suppliers have contracts with metropolitan service stations, giving city motorists priority over independent regional suppliers. Energy Minister Chris Bowen has called the resulting regional shortages "real and unacceptable." Dozens of fishing trawlers have been stranded, and distributors describe it as the worst shortage they have seen.

Reported fuel reserve positions (context)

38 days
Petrol reserves
Bolstered by IEA release
30 days
Diesel reserves
Critical for agriculture
30 days
Jet fuel reserves
~802 million litres

Important context: Australia is the only International Energy Agency member that does not meet the mandatory 90-day fuel reserve requirement—a rule it has been non-compliant with since 2012. Energy analyst Kevin Morrison notes Australia has been "flouting the IEA's 90-day oil stockpile rule for over a decade." The country imports roughly 90% of its fuel, primarily from South Korea, Singapore, Malaysia, and Taiwan.

Reserve day counts vary by definition (commercial vs strategic stocks, product mix). For example, SBS (19 April 2026) reported the Energy Minister citing 46 days of petrol and 31 days of diesel in reserve, alongside a falling count of stations without product—treat any single figure as a statement at a point in time, not a forecast.

Areas Currently Affected

Victoria

  • • Robinvale — completely dry
  • • Hattah — completely dry
  • • Wedderburn — reports of shortages
  • • Bonnie Doon — reports of shortages

New South Wales

  • • Batlow — completely dry
  • • 32 out of 3,000 service stations out of fuel
  • • Rural towns facing rationing

Western Australia

  • • 6 of 765 Fuelwatch stations reported out of fuel (week ending 22 March)
  • • Manjimup — two stations ran dry
  • • Ongerup — fuel rationing for over a week
  • • Great Southern, Wheatbelt, Goldfields, South West affected
  • • For current WA government measures and the national plan level, see WA fuel security (e.g. all jurisdictions at Level 2 on the National Fuel Security Plan as of its 14 Apr 2026 update).

Retail prices (volatile; check sources)

  • • Late March reporting included metro unleaded above about $2.50/L and very high diesel in places; by mid-April many capitals saw lower advertised metro prices (see SBS, 19 Apr 2026).
  • • Perth: further falls were reported for the weekend of 18–19 April (PerthNow links in the snapshot above).
  • • WA FuelWatch (25 Mar historical snapshot): high posted prices on some brands; always use the live site for today's prices.
  • • Brent and wholesale markers can move within days; follow AAP/commodity wires or your preferred data vendor for current numbers.

Government Response

Federal Government Actions

  • Released 762 million litres from emergency stockpiles (20% of reserves)
  • Temporarily relaxed fuel standards for 60 days (higher sulphur fuel allowed)
  • ACCC directed to monitor for price gouging
  • Regional areas prioritised for fuel distribution

Western Australia Government Actions

  • National Fuel Security Plan — Level 2: WA reports (as of 14 Apr 2026) that all states and territories, including WA, remain at Level 2, enabling timely industry data gathering. Overview: fuelplan.gov.au.
  • Official WA summary (17 Apr 2026): national stocks described as secure with >30 days reserves; ask consumers to buy only what they need; 4 million litres of additional state-owned diesel; FuelWatch expansion from 1 May (~200 more retailers, higher fines for price non-reporting, mandatory outage reporting to follow); support for regional airfares; halved Commonwealth excise from 1 Apr; section 43 directions under the Fuel, Energy and Power Resources Act from 2 Apr 2026 for supply-chain information sharing.
  • Appointed Wheatbelt Development Commissioner Rob Cossart as Fuel Security State Controller, with a State Management Team coordinating with industry (see weekly updates).
  • Earlier March measures (e.g. heavier road-train loads to regions, FIOG) may still apply; cross-check dates on the WA page and media statements.
  • Weekly fuel update: WA Government weekly fuel update.

Primary: WA — Western Australia's fuel security| WA media statement (15 Mar 2026 example)| FuelWatch price trends

PM Announces Carpooling Campaign

  • PM Albanese announced a national carpooling campaign to reduce vehicles on the road
  • Working from home remains encouraged but not mandated
  • Unions have publicly argued for access to remote work where roles allow it during the disruption (see news links below for specific claims and dates).

Source: News.com.au — Discounts, WFH, carpooling: PM's huge move (March 25, 2026)

National Cabinet: Fuel Excise Halved for Three Months (March 30)

  • Fuel excise halved for three months, saving motorists 26 cents per litre at the bowser
  • Heavy-vehicle road user charge reduced to zero for the same three months
  • Both measures take effect on Wednesday, April 1
  • Combined cost to the budget: $2.5 billion. Treasurer Jim Chalmers declined to say how the cost would be offset
  • National cabinet adopted a four-phase fuel security plan. Australia is at phase two (“keeping Australia moving”). PM Albanese declined to specify what would trigger phase three (“taking targeted action”), saying it would be a decision of national cabinet
  • PM Albanese called for more “certainty” from the US on its objectives in the Iran war and urged de-escalation of tensions

Sources: ABC News — Fuel excise halved for three months (March 30, 2026)| The Guardian — Labor to halve fuel excise (March 30, 2026)| BBC News (March 30, 2026)

Business Pushback Against Remote Work: "This Is Not COVID"

Despite the IEA's clear recommendation that WFH reduces fuel demand, several business leaders have pushed back against government encouragement of remote work:

  • Bunnings boss Mike Schneider warned the government not to "meddle" in WFH arrangements
  • BHP, hospitality tycoon Chris Lucas, and developer Tim Gurner also rejected WFH encouragement
  • Big four banks are holding firm against union demands for staff WFH access
  • Business Council chief Bran Black said WFH should be a "last resort"

The IEA estimates that three additional WFH days per week could cut oil consumption from cars by 2 to 6 per cent nationally. With millions of Australian office workers able to work remotely, encouraging WFH is one of the fastest, lowest-cost tools to cut demand — no rationing needed.

Sources: AFR — Business tells Bowen to back off (March 23, 2026) | AFR — Banks rebuff WFH calls (March 24, 2026)

Industry Fallout: Travel Cuts & Price Hikes

  • Wesfarmers — temporarily suspended corporate travel (Bunnings, Kmart, Officeworks parent)
  • Uber, Qantas, Virgin, Australia Post — hiking prices to offset fuel costs

Notably, Wesfarmers is the parent company of Bunnings — whose CEO Mike Schneider publicly opposed government WFH encouragement on the same day Wesfarmers suspended its own corporate travel.

Source: AFR — Wesfarmers suspend travel, Uber hikes prices (March 24, 2026)

Could Fuel Rationing Happen?

While Energy Minister Chris Bowen has ruled out rationing for now, experts warn it remains a real possibility if the conflict continues.

"If this keeps going... the physical response is a really, really difficult one because it does begin to take you into that territory of rationing."

— Greg Bourne, Former Regional President of BP Australasia

"In a world where a single conflict can immobilise a fifth of global oil trade overnight, relying on luck is not a strategy."

— Macquarie University researcher

The Liquid Fuel Emergency Act

Australia has emergency powers under the Liquid Fuel Emergency Act 1984 that allow governments to prioritise fuel supply or restrict sales during severe disruptions. Under the Retail Rationing Framework, motorists would face daily dollar-value limits on fuel purchases.

The federal government's National Liquid Fuel Emergency Response Plan (devised in 2019 by the Department of Environment and Energy) outlines an escalating series of measures: "light-handed" measures first — an information campaign encouraging carpooling, public transport use, and EV uptake, estimated to save 3 to 5 per cent of general fuel consumption — followed by progressively tighter restrictions if supply worsens.

The most severe measure would allow petrol pumps to shut off once they reach a daily dollar limit set by the energy minister. Environment Minister Murray Watt on 25 March dismissed reports of a $40 cap, saying it was "a document from the then-government, which was released in 2019, and the situation has obviously changed." He urged Australians to "be sensible about the amount of fuel they buy" and "think of each other."

To formally declare a national liquid fuel emergency, Energy Minister Chris Bowen would consult states, territories and industry before making a recommendation to the governor-general. Education Minister Jason Clare said "any talk of rationing, I think it's way too soon to be talking about that."

Source: WAtoday — Australia's emergency plan starts with carpooling, escalates to fuel caps (March 25, 2026)

Global Response

IEA Emergency Release & 10-Point Plan

The IEA coordinated a release of 411.9 million barrels—exceeding all previous interventions combined. It also released a report with 10 emergency measures, including urging people to work from home. At a national level, if workers did an additional three days from home, the IEA estimates it could cut oil consumption from cars by 2 to 6 per cent, with average potential reductions of about 20 per cent for individual drivers.

Countries Already Rationing & Reducing Work Days

Sri Lanka closed public offices on Wednesdays and has a QR code fuel authorisation system. Pakistan mandated a four-day work week for government workers and ordered half of all office staff to work from home. The Philippines mandated a four-day week for public servants. Thailand told public workers to work from home and use stairs to limit energy use. Bangladesh imposed daily limits on fuel sales. Air New Zealand has cut 1,100 flights.

Agriculture and diesel timing

Seeding and harvest windows make diesel availability and price sensitive for broadacre operations. Regional reporting earlier in March described localised supply stress; conditions can differ by district and week—use industry and government bulletins for current status.

"The timing of seeding operations is absolutely critical in obtaining good yields. A difference of a few days, or even a week, can have a big difference on a good outcome."

— Michael Lamond, Agronomist

The Victorian Farmers Federation reports that entire towns have run dry, and suppliers are struggling to access fresh shipments. With the national grain crop worth more than $20 billion last year, fuel shortages during seeding could have significant economic impacts.

Critical Concerns:

  • • Tractors and farm machinery require thousands of litres daily
  • • Regional suppliers often get lower priority than city stations
  • • Seeding delays could reduce crop yields significantly
  • • Food production chains are at risk if shortages continue

Beyond Agriculture: Wider Industry Impact

Aviation

Qantas has indicated it will need to increase fares, with flight cancellations on the cards if supplies don't improve. Air New Zealand has already cut 1,100 flights due to fuel pricing and supply constraints.

Mining

Junior and mid-tier mining companies are maintaining only five days of fuel supply. Diesel availability and price affect haulage and generation; verify current Perth and regional prices on FuelWatch rather than relying on any single historical quote.

Food prices

Fuel and freight costs feed into farm input prices and, over time, retail food prices, but the pass-through is indirect and varies by product. Treat any single headline percentage as a scenario from a specific interview unless you can link the original quote and context.

Macro outlook

Commentators have published a wide range of macro scenarios tied to shipping and oil-market disruption. We do not summarise speculative forecasts here; refer to the Reserve Bank, Treasury, and primary market commentary for model-based outlooks.

Housing

WA Deputy Premier Rita Saffioti and Minister John Carey hosted a housing industry roundtable on 25 March to discuss the conflict's downstream impacts on the sector. The government says delivering thousands of homes remains a priority despite the fuel situation.

Should Australia Adopt a Four-Day Work Week?

With several Asian nations already implementing reduced work weeks to preserve fuel stocks, at least one Australian expert says the federal government should be seriously considering the same approach.

"That conversation should be being held immediately. Because this [fuel crisis] is not going to end soon, in my view."

— Professor Tina Soliman-Hunter, Energy and Resources Law, Macquarie University

Professor Soliman-Hunter warned that even if the crisis was resolved this week—which she regards as highly unlikely—Australia would still feel its effects for weeks. At least six ships carrying oil bound for Australia have been cancelled due to the Strait of Hormuz blockade.

"We need to make sure that we've got a whole series of escalating actions in place. So first we do things like asking people to work at home wherever possible, then we ask for things like carpooling, and then we might need to go to the four-day work week."

— Professor Tina Soliman-Hunter, Macquarie University

"It would work very well if you're trying to get cars off the road. The question is whether that would be an acceptable shift in Australia, which I'm not convinced about."

— Professor Tina Soliman-Hunter, Macquarie University

Countries Already Reducing Work Weeks

  • 🇱🇰Sri Lanka — ordered state institutions, schools and universities to a four-day week
  • 🇵🇭Philippines — mandated four-day week for public servants
  • 🇵🇰Pakistan — four-day week for government workers plus half staff WFH
  • 🇹🇭Thailand — told public workers to work from home

Source: 9News — Fuel shortage: Australia must plan for a four-day work week (March 24, 2026)

How fewer office commutes reduce road fuel use

Perth workers: see our dedicated guide on Perth: remote work and fewer car trips during fuel-market volatility — practical steps, FuelWatch context, and employer-facing notes.

"Work-from-home is useful for short-term crises and long-term energy planning... it's just one piece of a broader strategy, alongside cleaner electricity, building efficiency, and electrified transport."

— Professor Fengqi You, Energy Systems Engineering, Cornell University (Al Jazeera, March 16)

The International Energy Agency has published scenario estimates for oil-demand measures, including additional remote-work days, alongside other transport and efficiency options. Any national percentage depends on adoption and duration; treat agency figures as modelling inputs, not guarantees. For current IEA numbers, use the release you intend to cite on iea.org.

Immediate Impact

Every day you work from home is a day you don't commute. ABS working-arrangements data can be used to benchmark how common regular remote work already is; marginal changes during a disruption still remove passenger-vehicle kilometres that would otherwise occur.

Emissions Reduction

Fewer cars on the road means reduced demand pressure and lower emissions. WFH saves approximately 242 kg of CO₂ per person annually—multiply that across millions of workers.

Traffic Reduction

Perth commuters lose nearly 3 days annually to congestion. WFH directly reduces traffic, making essential travel more efficient for those who must drive.

Cost Savings

When retail fuel prices are elevated, avoided commute kilometres translate directly into lower private fuel spend. CEDA has published estimates of time and money saved by remote-capable workers; see their methodology before applying a headline figure to your own situation.

Practical options where remote work is feasible

International agencies have listed remote work among demand-management measures for oil shocks because it can remove discretionary passenger-vehicle kilometres. The effect depends on how many commutes shift and for how long; it is one lever alongside public transport, trip chaining, and vehicle efficiency.

  • Work from home if you can. Every commute cancelled is fuel saved for those who can't work remotely
  • Avoid panic buying—take only what you normally need
  • Combine trips when you do need to drive
  • Share the WFH business case with employers who may be hesitant about remote work
Get the WFH business case

Use evidence your employer already accepts (productivity, retention, recruitment) and add transport costs only where relevant.

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